Property Valuation Time and Property Taxes
By Shaun James, Attorney, Smith Pauley LLP
No one wants to pay more in property taxes and for many homeowners and small business property owners, this seems to be an annual saga but many do not know what to do and when to do it.
First, it is important to understand how property taxes are determined. Each year county assessors and their appraisers set a preliminary value for the property for tax purposes. The assessor does not determine your property taxes, that is a function of the county board which sets the tax levy rate each year. There may be a couple of years with no change in the value and then a “significant increase”, or there may be increases more frequently due to new construction, improvements, sales of properties in the same area, or the need to equalize the value of your property with similar properties in the county. If the property was damaged, there could be a decrease in the valuation from the prior year.
The preliminary values in Douglas, Lancaster and Sarpy Counties are available on-line in mid-January at that county assessor’s website. There is a short period of time in which you can meet with an appraiser in the assessor’s office to provide information that supports a reduction in the proposed valuation. Photos, repair proposals and neighborhood sales, are some examples of supporting information. You may receive a reduction in the preliminary value as a result of the meeting. Other counties do not post the proposed valuations, so property owners must wait until the county issues notices of the change in valuation. These notices usually come out in mid to late May. If you do not receive a notice and are concerned that your property valuation may have increased, call the assessor’s office to check. Notices do get lost in the mail or are not correctly addressed. If the county sent the notice, failure to receive it is not a valid challenge to the valuation. Also, if you had a reduction after your discussion with the assessor’s office, be sure you receive a notice with the value you agreed upon. Any change in value of $100 or more requires a notice to you as the property owner.
The preliminary value recommendation set by the assessor’s office can be challenged by filing a protest with the county board between June 1 and June 30. Any protest filed prior to June 1 or after June 30 is invalid. A protest postmarked between June 1 and June 30 is valid. Your protest will be reviewed once submitted. You may have an interview with either a referee hired by the county board, or by the board itself to present your reasons for a reduction in the proposed value. All final values must be approved by the county board and that value is used to calculate the property taxes. If the valuation set by the county board is still unacceptable, you may appeal the decision to the Nebraska Tax Equalization and Review Commission within the time period permitted for appeals.
Prior to the end of the year, the county board will set the tax levy rates for properties in the county. You may receive a meeting notice from the county board that one or more political subdivisions, such as the school district, has requested an increase in the levy rate that exceeds that subdivision’s statutory increase limit. These are requests and are not included in the final levy rate unless approved by the county board. Once the levy rate is set, the county will send out the property tax statements for payment the following year. Although the statement will show that the property taxes are “due” December 31, the payments may be made in two installments and do not accrue interest until after those dates if the payments are not made.
Shaun James was an administrative professional in the non-profit arts industry serving the greater Omaha metropolitan area. Her experience in the non-profit world provided her with unique opportunities to work with city, county, state and federal officials and agencies, as well as key members of the business community. She focuses her practice on real estate areas and works regularly with public officials, contractors and outside professionals to assist clients achieve their goals in the use, development, financing and valuation of their property.
Shaun served on the board of directors of the Friends of the Omaha Public Library from 2000 to 2010, including terms as president, secretary and membership chair. She is a volunteer with the Nebraska Humane Society, assisting the NHS veterinarians and technicians with the care of animals since 2006. Shaun received the NHS Volunteer of the Year in 2015. She received the Outstanding Service to the Community in 1998 for producing a mock trial video of “Goldilocks and the Three Bears” for use in schools during Law Week.